nep-sea New Economics Papers
on South East Asia
Issue of 2017‒07‒02
fourteen papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Does Growth in Non-profit Institutions Improve Government Transparency? A Case Study from Vietnam By Khac Giang Nguyen, Quang Thai Nguyen and Thanh Tung Nguyen
  2. Power Politics and Securitization: The Emerging Indo–Japanese Nexus in Southeast Asia By Bibek Chand and Zenel Garcia
  3. Asymptotics for the Discrete-Time Average of the Geometric Brownian Motion and Asian Options By Dan Pirjol; Lingjiong Zhu
  4. Global Productions Sharing and Local Entrepreneurship in Developing Countries: Evidence from Penang Export Hub, Malaysia By Prema-chandra Athukorala
  5. Asia-Pacific and Latin America: Dynamics of regional integration and international cooperation By Hosono, Akio
  6. Pengeluaran (Belanja) dan Kecukupan Pangan Pada Keluarga Petani By Harisman, Kundang
  7. The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia By Gharad Bryan; Melanie Morten
  8. The Future of Asian Regionalism: Not What It Used to Be? By Mark Beeson and Troy Lee-Brown
  9. Building Cooperation for Managing the South China Sea Without Strategic Trust By Sam Bateman
  10. Theory and Application of an Economic Performance Measure of Risk By Cuizhen Niu; Xu Guo; Michael McAleer; Wing-Keung Wong
  12. "“What really matters is the economic performance: Positioning tourist destinations by means of perceptual maps" By Oscar Claveria
  13. Protective Measures in Integration Agreements and Their Impact on Mutual Trade and Trade with Third Countries: Features of Russia and the Countries of the Eurasian Economic Union By Knobel, Alexander; Baeva, Marina
  14. International Law in a Post-Post-Cold War World—Can It Survive? By Alison Pert

  1. By: Khac Giang Nguyen, Quang Thai Nguyen and Thanh Tung Nguyen
    Abstract: Non-profit institutions have long been believed to significantly contribute to good governance practice, particularly in transitional or authoritarian countries. Nevertheless, there has been a lack of sufficient empirical evidence to support that claim. This article uses Vietnam as a case study to examine the linkage between a rising number of non-profit institutions and the improvement of good governance practice by analysing impacts of non-profit institutions' development on government's transparency at the provincial level from 2011 to 2014. To do so, the article employs pooled ordinary least squares, fixed effects and random effects models with different sets of control variables. On the basis of the quantitative results, we conclude that the rise of non-profit institutions does have a positive impact on the quality of governance in Vietnam, at least in terms of fostering its transparency.
    Keywords: Vietnam, non-profit institutions, good governance, transparency, panel data
    Date: 2017–05–11
  2. By: Bibek Chand and Zenel Garcia
    Abstract: China's ascent has led to its securitization by its neighbouring states, particularly given its precarious maritime claims in the highly strategic Indo-Pacific basin. Such a development in the region has allowed India and Japan to forge closer strategic partnerships in Southeast Asia. This article utilizes securitization theory to analyse the emerging Indo–Japanese nexus, wherein Japan's increasing desecuritization and India's non-securitization in Southeast Asia have allowed the region to emerge as a common strategic vantage point for Indo–Japanese interests to convene. The securitization of China, coupled with India and Japan's common interests in safeguarding the freedom of navigation and deterring unilateral changes to the status quo, contributes to the emergence of this nexus. Furthermore, the emerging nexus provides states of Southeast Asia a hedging option as China's increasing assertion of its territorial claims. Japan's Security Diamond policy and India's Act/Look East policy will also be analysed to showcase the emergence of the Indo–Japanese nexus.
    Keywords: Securitization theory, India, Japan, Southeast Asia, hedging
    Date: 2017–04–24
  3. By: Dan Pirjol; Lingjiong Zhu
    Abstract: The time average of geometric Brownian motion plays a crucial role in the pricing of Asian options in mathematical finance. In this paper we consider the asymptotics of the discrete-time average of a geometric Brownian motion sampled on uniformly spaced times in the limit of a very large number of averaging time steps. We derive almost sure limit, fluctuations, large deviations, and also the asymptotics of the moment generating function of the average. Based on these results, we derive the asymptotics for the price of Asian options with discrete-time averaging in the Black-Scholes model, with both fixed and floating strike.
    Date: 2017–06
  4. By: Prema-chandra Athukorala
    Abstract: This article examines opportunities and policy options for developing countries to promote engagement of local firms in global production networks. The article begins with a stage-setting overview of the ongoing process of global production sharing and the emerging opportunities local firm's engagement. It then undertakes an illustrative case study of the export hub in the state of Penang in Malaysia. Forging operational links between multinational enterprises, which set up assembly plants in Penang, and local firms was an integral part of the export-led development strategy of the state. This policy emphasis was instrumental in fostering a domestic supplier network around the operations of the multinational enterprise subsidiaries. A number of local firms, which emerged de novo through production sharing, have become global players in their own right, with production bases in a number of other countries.
    Keywords: globalization, trade policy, multinational enterprises, global production networks
    Date: 2017–03–03
  5. By: Hosono, Akio
    Abstract: Regional economic integration is stronger when complementarity and synergy effects are generated between “de jure” economic integration and close economic relations achieved autonomously through market-led /business-driven integration. This observation is important when we consider bringing closer the economic ties between Asia Pacific and Latin America. Japan has a large potential to contribute to the development of such economic ties. This is precisely because of the unique position that Japan has long retained both in East Asia and Latin America, and its catalytic role for the process of industrial development and structural transformation.
    Date: 2017–06
  6. By: Harisman, Kundang
    Abstract: The objective of this study was to count the expenditure pattern food and non food, food staying power and condition calory balanceof three groups of farmers household. A survey was conducted in this study upon the sample from household which was sorted out trought simple random sampling. The data obtained were presented in the form tabulation and descriptively analyzed.The result of this study indicated that the comsumption patters of the groups farmers household, base on their form size, were following the Engel”s law. The higher their household income the lower the percentage of consumption expenditure for food, but higher for non food.Food staying power is mean of food expenses level was 53,72 percent, 57,05 percent and 58,66 percent for farmers cattlemen, cultivation and fishery farmer respectively. It is obvious that sequence of level of food staying power the strongest to the weakest is cattlemen, cultivation and fishery farmer.Condition calory balance average household the result of this study, three groups farmers to on condition calory balance not yet indicator value of which maximal, with balance standard of calory/day by healty of Indonesia
    Keywords: Expenditure Pattern, Food Staying Power, Condition Calory Balance
    JEL: Q0
    Date: 2017
  7. By: Gharad Bryan; Melanie Morten
    Abstract: We estimate the aggregate productivity gains from reducing barriers to internal labor migration in Indonesia, accounting for worker selection and spatial differences in human capital. We distinguish between movement costs, which mean workers will only move if they expect higher wages, and amenity differences, which mean some locations must pay more to attract workers. We find modest but important aggregate impacts. We estimate a 22% increase in labor productivity from removing all barriers. Reducing migration costs to the US level, a high mobility benchmark, leads to an 8% productivity boost. These figures hides substantial heterogeneity. The origin population that benefits most sees an 104% increase in average earnings from a complete barrier removal, or a 37% increase from moving to the US benchmark.
    JEL: J61 O18 O53 R12 R23
    Date: 2017–06
  8. By: Mark Beeson and Troy Lee-Brown
    Abstract: The largely unexpected election of Donald Trump as President of the United States has overturned many assumptions and expectations about the future of Australia's regional relationships. Even before Trump's election, however, the history of regional evolution in East Asia presented a number of striking paradoxes and raised important questions about the forces that encourage or obstruct integration and cooperation at the regional level. For a region that has frequently been associated with comparatively limited cross-border political institutionalization and development, East Asia has recently been the centre of a large number of initiatives and proposals that are intended to give expression to particular visions of the region. We argue that the outcome of such regional processes is profoundly influenced by both geo-economic and geopolitical forces. We illustrate this claim by looking at the history of institutional development in the ‘Asia-Pacific’, before considering the attempt to create a new ‘Indo-Pacific region’, which, we suggest, has more to do with contemporary geopolitical concerns rather than any underlying ‘natural’ coherence. The Australian policy-making community needs to think carefully about the implications of the Trump presidency for such initiatives.
    Keywords: Asia-Pacific, regionalism, Indo-Pacific, international institutions, security architecture, East Asia
    Date: 2017–02–26
  9. By: Sam Bateman
    Abstract: The ruling from the arbitral tribunal dealing with the case between China and the Philippines in the South China Sea provides opportunities for fresh approaches to building cooperation for managing the sea and activities within it. This cooperation is both a necessity and an obligation of the countries bordering the sea. However, obstacles remain, particularly the lack of trust between the various stakeholders in the sea and the way in which important areas for cooperation, such as fisheries management, environmental protection and marine scientific research, have been politicised to the extent that even cooperation in these areas cannot proceed without greater strategic trust. The objective of this paper is to put forward a set of policy implications from the ruling that might overcome these obstacles and allow the necessary cooperation to proceed despite the lack of strategic trust.
    Keywords: South China Sea, arbitration ruling, maritime cooperation, trust, ASEAN
    Date: 2017–04–18
  10. By: Cuizhen Niu (Beijing Normal University, China); Xu Guo (Beijing Normal University, China); Michael McAleer (National Tsing Hua University, Taiwan; University of Sydney Business School, Australia; Erasmus University Rotterdam, The Netherlands;Complutense University of Madrid, Spain; Yokohama National University, Japan); Wing-Keung Wong (Beijing Normal University, China)
    Abstract: Homm and Pigorsch (2012a) use the Aumann and Serrano index to develop a new economic performance measure (EPM), which is well known to have advantages over other measures. In this paper, we extend the theory by constructing a one-sample confidence interval of EPM, and construct confidence intervals for the dfference of EPMs for two independent samples. We also derive the asymptotic distribution for EPM and for the dfference of two EPMs when the samples are independent. We conduct simulations to show the proposed theory performs well for one and two independent samples. The simulations show that the proposed approach is robust in the dependent case. The theory developed is used to construct both one-sample and two-sample confidence intervals of EPMs for Singapore and USA stock indices.
    Keywords: Economic performance measure; Asymptotic confidence interval; Bootstrap-based confidence interval; Method of variance estimates recovery
    JEL: C12 C15
    Date: 2017–06–23
  11. By: Francesco Aiello; Graziella Bonanno; Luigi Capristo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: One learns two main lessons from the efficiency literature on local governments. The first lesson regards the heterogeneity in the efficiency scores reported in primary papers. The second lesson is that there is no quantitative evidence on the role played by the features of each paper (i.e. estimation method, sample size, dimension, returns to scale) in explaining the differences in results. In order to fill this gap, we review the related empirical literature and perform a Meta Regression Analysis (MRA) by examining 360 efficiency scores retrieved from 54 papers published from 1993 to 2016. The meta-regression is based on a random effect model estimated with the Random Effects Maximum Likelihood (REML) technique, because it controls for within- and between-study heterogeneity. We also run a fixed effect unrestricted Weighted Least Squares (WLS) regression. Due to its main research focus, that is measuring the impact of potential sources of heterogeneity on local government efficiency, the paper contributes to the debate in two ways. One of this concerns the role of methodological choices made by researchers when performing an efficiency study. The second regards the role of deregulation in local government, which is a policy-issue in a number of countries. Results show that efficiency scores are highly heterogeneous. To be precise, significant differences in means are found when grouping efficiency by different criteria. The meta-regression estimates indicate that studies focusing on technical efficiency provide higher efficiency scores than works evaluating cost efficiency. Using panel data in primary studies allows researchers to obtain higher efficiency of local government than papers using cross-section data. Interestingly, FDH studies yield, on average, higher efficiency scores than DEA papers, thereby suggesting that in this literature the convexity hypothesis of the production set is a matter. Furthermore, we find that primary papers evaluating the efficiency of European municipalities provide lower efficiency scores than studies focusing on other countries (USA, Africa, Asia and Latina America). We also provide evidence that the estimated efficiency scores in primary papers focusing on the municipalities of a region are, one average, lower than those retrieved from studies addressing the efficiency of the national system of local government.
    Keywords: Efficiency, Municipalities, Frontier Models, Meta-analysis, Convexity
    JEL: C13 C14 C80 D24 H11 H40 H50
    Date: 2017–06
  12. By: Oscar Claveria (Department of Econometrics, Statistics and Applied Economics. University of Barcelona, Diagonal 690, 08034 Barcelona)
    Abstract: The present study aims to cluster the world's main tourist destinations according to the growth of the economic performance of the tourist activity and of the tourist and economic development experienced during the last decade. With this objective, we combine the information from a set of tourist and economic indicators for the main 45 tourist destinations over the period between 2000 and 2010. Destinations are ranked with respect to their average growth rate over the sample period. By assigning a numerical value to each country corresponding to its position, all the information is summarised into two components (“economic performance of tourist activity” and “tourist and economic development”) via multivariate techniques for dimensionality reduction: multidimensional scaling (MDS) and categorical principal components analysis (CATPCA). By means of perceptual maps, we find that destinations can be clustered into four different groups. The first one, dominated by Western and Northern Europe markets, contains some of the top destinations (France, Spain and the United States). A second one, with a predominance of Mediterranean destinations (Cyprus, Greece, Italy and Israel), obtains high scores in both dimensions. In the third one, we find Cambodia and China, alongside Egypt and Turkey. Finally, a fourth group dominated by Eastern Europe destinations (Bulgaria, Croatia and Latvia) with low scores in both dimensions.
    Keywords: Tourist destinations; Positioning; Perceptual maps; Multidimensional Scaling (MDS); Categorical Principal Components Analysis (CATPCA). JEL classification:A12, C38, F43, M31, Z3, Z32.
    Date: 2017–06
  13. By: Knobel, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Baeva, Marina (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This research provides review of impose trade remedies (antidumping, countervailing measures, safeguard measures) and conduct relative investigation as well as sanitary and phytosanitary measures (SPS) against certain trade partner by different countries in 1995–2015. This research considers theoretical aspects, empirical studies of introduction of trade measures in integration blocks like NAFTA, MERCOSUR, ASEAN, Pacific Alliance, EAEU, TTP (countries-signers) and RCEP (negotiated parties) against members and third countries. Furthermore, trade measures imposed by Russia and imposed against Russia are considered.
    Keywords: international trade, trade and economic cooperation, integration blocks, free trade agreements (FTA), tariff and non-tariff measures, antidumping, countervailing measures, safeguard measures, sanitary and phytosanitary measures (SPS)
    Date: 2017–05
  14. By: Alison Pert
    Abstract: Recent world developments pose a direct challenge to the authority and effectiveness of international law. The actions of Russia in Ukraine, and China in the South China Sea, represent a particular threat. These actions are in clear violation of international law, involving the threat or use of armed force and the seizure of territory, and Russia and China are permanent members of the UN Security Council – the body charged by the international community with maintaining international peace and security. Putting further potential strain on the international legal order is the marked shift towards nationalism in many states, most notably the United States under Donald Trump. This article argues that the international community should not accept these developments as inevitable. Support for multilateralism over isolationism and unequivocal condemnation of breaches of international law are needed now more than ever.
    Keywords: international law, multilateralism, good international citizenship, Russia, Ukraine, China, South China Sea, China-Philippines arbitration, lawfare, Putin, Trump
    Date: 2017–04–06

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